NEW YORK--(BUSINESS WIRE)--May 9, 2003--The Estee Lauder Companies
Inc. (NYSE:EL) announced today that it has acquired Michael Kors
Fragrances, the fragrance and beauty license previously held by
American Designer Fragrances, a division of LVMH.

Terms of the deal were not disclosed. Michael Kors Fragrances will
become part of The Estee Lauder Companies' Aramis and Designer
Fragrances Division, which is led by Patrick Bousquet-Chavanne, Group
President, and John Karp, President.

The Michael Kors fragrance business was launched in 2000 with his
signature FiFi award-winning women's fragrance, MICHAEL. MICHAEL for
Men was launched in 2001 and received awards from the Fragrance
Foundation and Cosmetic Executive Women. A new women's fragrance, KORS
Michael Kors, was launched in February 2003. All fragrances, as well
as ancillary bath and body products, are currently sold in department
stores, specialty stores, at freestanding Michael Kors boutiques and
over the Internet.

"We are very pleased about this new alliance with Michael Kors
L.L.C.," said Patrick Bousquet-Chavanne. "We believe that the brand
has significant growth potential, and we look forward to a long and
productive relationship with Michael and his partners, Lawrence Stroll
and Silas Chou, all of whom have tremendous track records. I know we
can count on their energy and talent to make this collaboration a
great success. The team at American Designer Fragrances has done a
very good job developing the Michael Kors concept, and the Michael
Kors fragrances have been well-received in the marketplace."

Michael Kors stated, "I am so thrilled to become part of The Estee
Lauder Companies. They are truly the bell-weather in the beauty
business... it's what everyone else aspires to become. I know that
with their expertise, my fragrance business is in the best of hands."

"Silas and I approached The Estee Lauder Companies about
partnering with us to take Michael's fragrance business to the next
level, and together we are mapping out a long-term strategy to
strengthen the brand and remain true to Michael's vision," said
Lawrence Stroll, Co-Chairman of Michael Kors. "We were the Company's
first designer licensor with Tommy Hilfiger, and we look forward to
new opportunities ahead with the Michael Kors business."

"Michael is a leader in the fashion world, and the Michael Kors
fragrances further strengthen our position in the designer fragrance
arena," said John Karp. "This will be a powerful complement to our
other designer licenses - Donna Karan, Tommy Hilfiger and Kate Spade -
each of which represents a unique and highly successful business."

Michael Kors is one of the leading American designers for luxury
sportswear. His range of products through his Collection and KORS
Michael Kors labels includes women's and men's ready to wear; women's
shoes, handbags and eyewear, as well as a full line of fragrance and
beauty products for both men and women. His products are available at
leading department and specialty stores throughout the world, as well
as freestanding retail locations in New York and Tokyo.

The forward-looking statements in this press release, including
those containing words like "will," "believe," and those in the
various remarks involve risks and uncertainties. Factors that could
cause actual results to differ materially from those forward-looking
statements include the following:

(i) increased competitive activity from companies in the skin
care, makeup, fragrance and hair care businesses, some of
which have greater resources than the Company does;
(ii) the Company's ability to develop, produce and market new
products on which future operating results may depend;
(iii) consolidations, restructurings, bankruptcies and
reorganizations in the retail industry causing a decrease
in the number of stores that sell the Company's products,
an increase in the ownership concentration within the
retail industry, ownership of retailers by the Company's
competitors and ownership of competitors by the Company's
customers that are retailers;
(iv) shifts in the preferences of consumers as to where and how
they shop for the types of products and services the
Company sells;
(v) social, political and economic risks to the Company's
foreign domestic manufacturing, distribution and retail
operations, including changes in foreign investment and
trade policies and regulations of the host countries and of
the United States;
(vi) changes in the laws, regulations and policies, including
changes in accounting standards, tax laws and regulations,
trade rules and customs regulations, and the outcome and
expense of legal or regulatory proceedings, that affect, or
will affect, the Company's business;
(vii) foreign currency fluctuations affecting the Company's
results of operations and the value of its foreign assets,
the relative prices at which the Company and its foreign
competitors sell products in the same markets and the
Company's operating and manufacturing costs outside of the
United States;
(viii) changes in global or local economic or other conditions
that could affect consumer purchasing, the willingness of
people to travel, the financial strength of our customers,
the cost and availability of capital, which the Company may
need for new equipment, facilities or acquisitions, and the
assumptions underlying our critical accounting estimates;
(ix) shipment delays, depletion of inventory and increased
production costs resulting from disruptions of operations
at any of the facilities which, due to consolidations in
the Company's manufacturing operations, now manufacture
nearly all of the Company's supply of a particular type of
product (i.e., focus factories);
(x) real estate rates and availability, which may affect the
Company's ability to increase the number of retail
locations at which the Company's products are sold and the
costs associated with its executive offices;
(xi) changes in product mix to products which are less
profitable;
(xii) the Company's ability to acquire or develop e-commerce
capabilities, and other new information and distribution
technologies, on a timely basis and within the Company's
cost estimates;
(xiii) the Company's ability to capitalize on opportunities for
improved efficiency, such as globalization, and to
integrate acquired businesses and realize value therefrom;
and
(xiv) consequences attributable to the events that are currently
taking place in Iraq and that took place in New York City
and Washington, D.C. on September 11, 2001, including
further attacks, retaliation and the threat of further
attacks or retaliation.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding The Estée Lauder Companies Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.